The federal government has started collecting taxes on all types of bank transactions for both filers and non-filers from July 1. The government has increased the tax rate for non-filers on cash withdrawals from banks, while filers are also subject to withholding tax for withdrawals exceeding Rs. 50,000 per day.
According to the new tax regime, filers will be charged 0.3% tax on withdrawals exceeding Rs. 50,000 per day, while non-filers will be charged 0.6%. Furthermore, banks have increased their charges, including ATM card fees, SMS alert fees, and fees for using other banks’ ATMs. These additional charges have led to disputes between bank customers and staff, with many expressing frustration over the increased costs.
As the banks revised their schedule of charges effective July 1, customers are facing double the burden in respect to increased costs. The ATM usage fee for other banks’ customers has been revised from Rs. 18 to Rs. 34 per transaction. Additionally, the ATM card fee has been increased by Rs. 700, and the SMS alert service fee has been hiked from Rs. 1,200 to Rs. 2,000, a rise of Rs800.
Non-filers will also face a deduction of Rs. 522 for cash withdrawals of Rs. 20,000 or more through a cheque. Furthermore, banks have set daily withdrawal limits for ATM users, with standard debit card holders able to withdraw up to Rs. 25,000 to Rs. 50,000 per day, premium card holders up to Rs. 500,000 per day, and foreign debit card holders the equivalent of $200 to $500 per day. The tax deduction will be automatic for transactions exceeding Rs. 50,000 per day.